📅 2026 Update: Recent Changes in Retirement and Consumer Finance

Since the original article was published, several important changes have taken place in personal finance and retirement laws. The SECURE 2.0 Act has introduced new rules that impact how individuals save for retirement and manage their accounts. These changes aim to make retirement planning more flexible and accessible for many people.

The earlier article continues further down the page for additional context.

🏦 SECURE 2.0 Act Implementation

The SECURE 2.0 Act, enacted in late 2022, has made significant updates to retirement savings. The Required Minimum Distribution (RMD) age has been raised to 73 for individuals born between 1951 and 1959. Those born in 1960 or later will start at 75 in 2033.

📉 RMD Penalty Reduction

Under the SECURE 2.0 Act, the penalty for not taking an RMD has decreased from 50% to 25% of the RMD amount. If an error is corrected within two years, the penalty drops to just 10% for IRAs. This change eases some of the financial pressure on retirees.

🥳 Roth 401(k) RMD Exemption

Starting in 2024, RMDs are no longer required from Roth accounts in employer retirement plans, like 401(k)s and 403(b)s. This allows individuals to keep their savings growing without mandatory withdrawals, making it more attractive for those who wish to pass on wealth.

🎓 529-to-Roth IRA Rollovers

Beginning in 2024, individuals can roll over up to $35,000 from 529 college savings plans to a Roth IRA. This provides more flexibility for families in managing educational savings and retirement funds.

📈 Catch-Up Contribution Increases

From January 1, 2025, individuals aged 60 to 63 will be able to contribute $11,250 as catch-up contributions to eligible retirement plans, up from the previous limit of $8,000. This change allows older workers to boost their retirement savings as they approach retirement.

📌 Key Points Summary

  • RMD age raised to 73 for 1951-1959 births; 75 for 1960 and later.
  • RMD penalty reduced to 25%, with a further decrease to 10% if corrected timely.
  • Roth 401(k) accounts now exempt from RMDs starting in 2024.
  • Roll over $35,000 from 529 plans to Roth IRAs beginning in 2024.
  • Catch-up contributions increase to $11,250 for ages 60-63 starting in 2025.

💡 Tips for Navigating Retirement Accounts

Reviewing your financial situation with an attorney can help clarify how these changes impact your plans.

📅 Understand Your RMD Timeline

It's important to know when you need to start taking RMDs based on your birth year. This will help you avoid costly penalties and ensure compliance with current laws.

💰 Consider Roth Accounts

With the RMD exemption for Roth accounts, consider the benefits of investing in a Roth 401(k) or Roth IRA. This could provide more financial freedom in retirement.

🎓 Explore 529 Plan Options

If you have a 529 plan, look into the new rollover option to a Roth IRA. This could be a strategic move if your educational savings are no longer needed.

📈 Maximize Catch-Up Contributions

If you are between the ages of 60 and 63, take advantage of the increased catch-up contributions. This is a great way to boost your retirement savings as you near retirement.

🏦 Review Your 401(k) Fees

Examine the fees associated with your 401(k) plan. If they are high, consider rolling over to an IRA where fees might be lower and investment options more favorable.

❓ Frequently Asked Questions

❓ What is the new age for starting RMDs?

Individuals born between 1951 and 1959 must begin taking RMDs at age 73, while those born in 1960 or later must start at age 75.

💡 How can I avoid penalties for not taking RMDs?

To avoid penalties, ensure you take your RMD by April 1 of the year after you reach the required age. Staying informed about your specific birth year requirements is crucial.

🎓 What is the maximum rollover amount from a 529 plan to a Roth IRA?

You can roll over up to $35,000 from a 529 college savings plan to a Roth IRA, subject to certain conditions starting in 2024.

💰 Can I make catch-up contributions to my retirement plan?

Yes, individuals aged 60 to 63 can make catch-up contributions of $11,250 starting January 1, 2025.

📉 What should I do if my 401(k) has high fees?

If your 401(k) plan has high fees, consider rolling over your account to an IRA where fees may be lower and investment choices broader.

📅 How often should I review my retirement accounts?

Regularly reviewing your retirement accounts is beneficial, especially after significant changes in laws or personal circumstances. Aim for at least once a year or after major life events.

⚖️ Recent Court Cases Impacting Retirement Accounts

Recent court rulings, including the vacating of the Department of Labor's Retirement Security Rule, have implications for retirement planning and fiduciary responsibilities.

Explore more recent rulings in the news section: more rulings on the news page.

End of October 2026 Update







What is a currency converter?

Exchange rates change every day, so you must use a currency converter that is updated daily, even hourly, to receive the best and most accurate quote.  Remember that currency converters will not incorporate the fees that will be charged by credit card companies, banks and exchange bureaus.  These added fees are generally posted with the exchange rates at the location of the business.  

Currency Converter

Google Currency Converter

The easiest way to find out the exchange rate is to type it into Google.  The first result will generally be the currency converter, provided you have entered the search term correctly.  For instance:

1. Type into the search bar:


o 1 USD to EUR

2. This will activate the currency converter, as there are two currency terms, representing the US Dollar and the Euro.  The results will display a chart showing the 5 year exchange rate trend and:


o 1 US dollar = 0.7492 euros

3. This number will obviously change from day to day. 

4. If you desire, you will be able to type other amounts into the currency converter tool

If you do not know the proper currency term, Google will generally recognize what you are trying to do.  So you may type “1 USD to Ruble” and the search results will display the currency converter tool with information on the Russian Ruble (RUB).  As you are using a search engine, finding the currency term for any country’s currency will not be difficult.

Currency conversion on the go

Of course, if you are at a store or tourist location, you may not have access to a computer, nor will checking every price be feasible.  Most mobile phones from the past decade (post-2000) will have calculators that have alternate currency converter functions.  You will simply need to add the current rate into the program and it will convert any amounts you punch in.  More advanced phones will have applications that update the currency rates regularly. 

 For a slightly lower tech alternative, a cheap handheld calculator will also work well.  Simply determine how much you will need to multiply the local currency to determine its value in your local currency.  For example, with the previous mentioned USD-EUR rate, you must multiply the Euro amount by 1.3 to approximate the value in USD.  Clearly, this method is less accurate at larger amounts, so you must use a proper currency converter before making a large foreign purchase.  This currency conversion will help you make a judgment on the value of the item.  

The calculator is also a valuable tool for haggling in countries where you do not speak the native language.  The majority of merchants around the world will recognize the Arabic numbers that we use to denominate value.  Just be sure that you are haggling in the foreign currency rather than your own to avoid a tragic breakdown in communication.